Pricing and discounting are two strategies to incentivize buyers to make a purchase decision. But there is always confusion where each would be appropriate. Also, pricing is often a sensitive area where most companies would rather undercharge in fear of losing market share or customers. Companies could use pricing strategies such as cost-plus, competition-based, value-based, price skimming, loss-leader, penetration, dynamic, bundle, premium, and anchor. But they rarely understand the true potential and their applications. There are a lot of factors to consider when developing an ecommerce pricing strategy. Competition, ever-changing customer expectations, material costs, and shipping all play a role in pricing your products. To stay relevant, brands need to continue to reevaluate their pricing strategy. But what are the best practices of pricing?
In today's episode, we invited a panel of cross-functional experts for a live interview on LinkedIn who brings significant expertise to discuss pricing strategies in the e-commerce world. We covered many grounds in this episode, including the difference between pricing and discounting strategies. Finally, we also discussed the nuances of various pricing types loss-leader, cost-plus, and competitor-based along with their pros and cons.
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